Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Shanghai Pengxin unit ends attempt to buy Northland farms

Shanghai Pengxin unit ends attempt to buy Northland farms, citing 5 months of silence from OIO, Lochinver rejection

By Jonathan Underhill

Oct. 12 (BusinessDesk) - Dakang New Zealand Farm Group, which is 55 percent owned by Shanghai Pengxin, has quit efforts to buy 10 farms in Northland, citing five months of silence from the Overseas Investment Office since it applied for clearance and its experience trying to buy Lochinver Station, which was scuttled by the government.

Dakang entered into a sale and purchase agreement to buy seven dairy and three support farms in Northland from Pinny Farms, the region's largest milk supplier. Dakang applied to the OIO in April for clearance to buy the 3,300 hectares of land milking 3,900 cows.

Dakang chief executive Gary Romano said he had expected five months would be "sufficient time to enable a rigorous and objective review of our plans for the farms, compared to the 70 working day guideline the OIO has for turning around applications."

“However, to date we have not received any advice that the OIO has considered the sale and/or made a recommendation to the ministers," Romano said in a statement. He declined to comment when asked whether Dakang had received any unofficial signals that the sale wouldn't be cleared.

The decision to quit the sale comes about a month after associate Finance Minister Paula Bennett and Land Information Minister Louise Upston rejected OIO's recommendation to approve the $88 million Lochinver sale to Shanghai Pengxin, saying the deal failed on the test of providing a substantial benefit to New Zealand. That decision, too, was subject to long delay and drew criticism from owner Stevenson Group, which said the government was trampling on its right to get the best possible price for the 13,843 hectare farm near Lake Taupo.

The Shanghai-based group already owns the 8,000 ha Crafar farms and a controlling stake in SFL Holdings, which bought 4,000 ha of Canterbury farms from Synlait Farms.

“Our decision to end the agreement (with Pinny) is somewhat based on our experience with Lochinver where the sale and purchase agreement had to be extended 11 times, each extension causing frustration and pain to the vendors, and uncertainty for everyone involved," Romano said. "We simply are not confident enough of a favourable outcome to warrant putting the Northland vendors through a similar experience.”

Pinny Farms is run by Merv and Cara Pinny from their headquarters in Kerikeri.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Building Activity Down In September Quarter
The volume of building activity in New Zealand fell 8.6 percent in the September 2021 quarter, compared with the June 2021 quarter, Stats NZ said today. Residential building activity fell by 6.4 percent in the September 2021 quarter, while non-residential building activity fell 12 percent... More>>


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>



Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>